TAX RETURN:: CLAIMING TAX DEDUCTIONS FOR THE COST OF MANAGING YOUR TAX AFFAIRS

Hello, this is your tax and super specialist, P&C Tax Professionals.

In Australia, individuals must lodge their own annual tax return directly with the ATO. If you lodge your tax return through an accountant, your accountant fee may vary depending on your income bracket and the deductions you are claiming.

Did you know that the accountant fee that you are being charged each year in order to lodge your tax return can also be claimed as a tax deduction when applying for your tax return? It is true that many Australians tend to reach out to an accountant to receive assistance with their tax matters so that they could reduce the risks of making a mistake on their tax return which could possibly lead to a tax audit being performed by the ATO, which could then ultimately delay the progress of their tax return. If you think about it in this way, the cost that is paid out as your accountant fee would not be a complete loss to you as not only will you be reassured that your tax return will be lodged accurately in line with the taxation laws but you would also be able to claim your accountant fee as a tax deduction on your next tax return.

To dive deeper into our conversation, let us explain to you what it actually takes to make a claim.

The types of costs for managing your tax affairs There are different types of deductions for which you can claim as the costs of managing your tax affairs such as:

> Purchasing tax reference material

> Enrolling in courses related to the preparation of your tax return

> The accountant fees that are charged if you are lodging your tax return via a registered tax agent

> The costs of obtaining tax advice from a registered tax adviser/agent, barrister or solicitor

> Dealing with the ATO regarding your tax affairs

> Purchasing accounting software packages that enables you to prepare and lodge your own tax return

(You may only claim the tax return related percentage of the cost if you are also using it for other personal purposes)

> Travel costs that are incurred in order to obtain tax advice (e.g. if you are having to attend a meeting with a qualified tax advisor)

> Litigation costs (e.g. if an objection has to be lodged with the ATO)

How to apply for the costs of managing your tax affairs deduction and the documents required

If you happen to have lodged a tax return through a registered tax agent, you can deduct the cost of your accountant fees for the next financial year as long as you keep the receipts for the payment you made and the date they were paid for. For example, the accountant fee charged to lodge your 2020 financial year tax return will be added as a tax deduction in your 2021 financial year tax return and not in the year it was spent. So, an easy way to remember is that you would always include the previous year's accountant fee for your current year tax return.

Those who lodge their tax returns through P&C Tax do not need to keep records of their receipts for the accountant fee they paid for. When you apply with us, simply request to have your last year's accountant fee included as a deduction in your tax return and we will take care of it from then.

If you have any further questions or would like to apply for your tax return with us, please feel free to contact us on our Official Facebook Page (P&C Tax Professionals - Australia) or through our email address at: pnctax@naver.com.

Thank you and bye for now!